DTE Energy (DTE) to Report Q4 Earnings: What's in the Offing?
DTE Energy Company DTE is set to report fourth-quarter 2021 results on Feb 10 before market open.
In the last reported quarter, the company delivered a negative earnings surprise of 6.01%. The company boasts a four-quarter average earnings surprise of 9.05%.
Let's take a closer look at the factors that are likely to get reflected in DTE Energy’s upcoming results.
Factors to Consider
In November and December, the company’s service territories witnessed cooler-than-normal temperatures accompanied by above-average snowfall. This is likely to have boosted electricity demand for heating purposes among the company’s customers, thereby boosting its top line in the fourth quarter.
However, in October, an above-average warm weather pattern accompanied by a serious drought condition in some parts of its service territories might have hurt its quarterly revenues. Therefore, the overall impact of temperature on DTE’s fourth-quarter revenues seems to have been mixed.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.18 billion, indicating a 3.3% decline from the year-ago quarter’s reported figure.
From the cost perspective, higher operating and manufacturing expenses and rate-based growth costs may have negatively impacted the bottom line of DTE Energy in the fourth quarter. However, a $50-million favorable reversal related to tax timing adjustments for the first three quarters is expected to have added impetus to its bottom line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for DTE Energy’s fourth-quarter earningsis pegged at 94 cents per share, suggesting a 32.4% decline from the year-ago quarter’s reported figure.
DTE Energy Company Price and EPS Surprise
DTE Energy Company price-eps-surprise | DTE Energy Company Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for DTE this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. DTE Energy has the right combination of elements to post an earnings beat this season.
The company has an Earnings ESP of +1.06% and carries a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks To Consider
Here are three Utility players that you may want to consider as they have the right combination of elements to post an earnings beat this season:
Ameren Corporation AEE has an Earnings ESP of +1.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ameren has a four-quarter average earnings surprise of 6.65%. The Zacks Consensus Estimate for Ameren’s fourth-quarter sales and earnings is pegged at $1.39 billion and 50 cents per share, respectively. AEE boasts a long-term earnings growth rate of 7.5%.
Dominion Energy D has an Earnings ESP of +0.09% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 6.6%.
The Zacks Consensus Estimate for Dominion Energy’s fourth-quarter sales and earnings is pegged at $3.85 billion and 90 cents per share, respectively. D has a four-quarter average earnings surprise of 2.39%.
American Electric Power Company, Inc. AEP has an Earnings ESP of +0.58% and a Zacks Rank #3.
American Electric boasts a long-term earnings growth rate of 5.6%. The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively. AEP has a four-quarter average earnings surprise of 1.61%.
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Ameren Corporation (AEE) : Free Stock Analysis Report
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Dominion Energy Inc. (D) : Free Stock Analysis Report
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